CCI clears Standard Life's additional stake buy in HDFC Life

New Delhi: The Competition Commission has approved British insurer Standard Life's additional stake purchase in its Indian insurance joint venture HDFC Life.

The British firm would be increasing its stake to 35 percent from 26 percent as the Indian government has allowed up to 49 percent FDI in the domestic insurance sector.

In a tweet, Competition Commission of India (CCI) said it has approved "increase of Standard Life (Mauritius) Holdings 2006 Ltd's stake from 26 percent to 35 percent in existing joint venture co, HDFC Life".

Standard Life would be acquiring the additional 9 percent stake for more than Rs 1,700 crore. Post the acquisition, the UK firm's overall shareholding in the joint venture with HDFC (Housing Development Finance Corporation) would rise to 35 percent.

After the transaction, HDFC's stake in the joint venture would come down to 61.65 percent.

HDFC, in August, announced selling little over 17.95 crore shares in the insurance venture to Standard Life for more than Rs 1,700 crore.

In 2000, HDFC and Standard Life launched the joint venture, which was the first private life insurance company to be granted a licence to operate in India.

Standard Life is listed on the London Stock Exchange and has around 1.2 million individual shareholders in over 50 countries. It has businesses in the UK, Europe, North America, Asia and Australia.